With Respect to Political Risk That Can Be Faced by a Company

question 10

Multiple Choice

With respect to political risk that can be faced by a company seeking to invest abroad, which of the following presents the most severe political risk?

• A) Confiscation
• B) Expropriation
• C) Domestication
• D) Exchange controls
• E) Local-content laws

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Definitions:

Primitive Beliefs

Early or ancient systems of thought and understanding that are often based on superstition or a lack of scientific knowledge.

Unit Relations

This term could refer to the interactions and relationships within a specific group, organization, or unit, focusing on how its members are connected and interact.

Classical Conditioning

A learning process through which associations are formed between a neutral stimulus and an unconditioned stimulus, leading to a learned response.

Low-Balling

A sales tactic where an initially low price is offered to attract a buyer before it is increased by adding costs or changing conditions.